Mini-study project (MBA)--University of Stellenbosch, 2003. / ENGLISH ABSTRACT: This report reviews the global and South African pharmaceutical and biotechnology
industries and provides an overview of the changes taking place within these two
industries. It highlights the impact this relationship will have on a developing South
African biotechnology industry.
Since the 1980s the pharmaceutical industry has experienced phenomenal growth in
sales and profits. By the mid 1990s drug sales exceeded USD250 billion. Today the
pharmaceutical industry is dominated by multi-national corporations with extensive
R&D budgets, widespread use of trademarks and patents and complex commercial
process technology. However they face threats from depleted product pipelines,
patent expiry on billion dollar drug products, generic competition, increases in drug
approval times, costs and price pressures.
The entrepreneurial biotechnology industry promises to solve a number of the
pharmaceutical industry's problems. In recent years biotechnology companies proved
more effective in the development of new molecular entities. They promise
individualised therapeutics, novel and more efficacious drug discovery and
development of preventative treatments. However the decrease in equity financing
after 2001 left almost 40% of biotechnology companies with less than 1 year of R&D
funding. The industry experienced losses again in 2002 and the world is divided over
the ethical, environmental and economic implications of biotechnological applications.
The biotechnology and pharmaceutical industries have a symbiotic but antagonistic
relationship. The change in this relationship will hugely affect South Africa's ideals of
developing a biotechnology industry.
Various diseases plague South Africa including HIV/AIDS, TB, obesity, diabetes,
hypertension and infective diseases. These diseases will have a huge impact on
South Africa's society. Yet only 10% of global R&D funding is committed to third
world diseases and existing drugs and treatments are either not effective or too
expensive for developing countries. It is in this situation that biotechnology and the development of a biotechnology industry could playa major role in alleviating South
Africa's health burden.
South Africa is already capable in first generation biotechnology, but third generation
applications holds the most promise. Developing countries face various obstacles
and challenges, but all boast well for South Africa. The government has committed
R400 million (over a three year period) to utilize South Africa's biotechnology
potential. Further, the country has highly skilled researchers, indigenous plant and
animal species, a diverse population and a favorable exchange rate (low R&D costs). / AFRIKAANSE OPSOMMING: Die projek ondersoek beide die globale en Suid Afrikaanse farmaseutiese en
biotegnologie industrieë. Verder word die veranderinge wat plaasvind in die
industrieë onder die soeklig geplaas. Die projek beklemtoon die impak wat die
verhouding sal hê op 'n ontwikkelende biotegnologie industrie in Suid Afrika.
Die farmaseutiese industrie het sedert die 1980s dubbel syfer groei getoon in
omsete en wins. Teen die middel 90's het verkope van farmaseutiese middels
US$250 miljard wêreldwyd oorskry. Vandag word die farmaseutiese industrie
oorheers deur multi-nasionale korporasies met omvattende navorsing en
ontwikkelings begrotings, algemene gebruik van handelsmerkte, patente en
komplekse proses-tegnologieë. Ten spyte hiervan word die industrie bedreig
deur leë produksie-lyne, verval van patente, miljard dollar farmaseutiese
produkte, generiese kompetisie, verlengde produk-goedkeurings periodes en
prys-mededinging.
Die biotegnologie industrie met sy innoveerende eienskappe beloof om
verskeie van die farmaseutiese industrie se probleme op te los. Onlangs het
biotegnologie maatskappye getoon dat hulle meer effektief is in die
ontwikkeling van nuwe molekulêre eenhede. Biotegnologie beloof nuwe en
meer effektiewe produk-ontwikkeling asook beter individuele terapieë en
voorkomende behandelings. Die industrie staar finansiële krisisse in die gesig.
Slegs 40% van biotegnologie maatskappye het voldoende navorsing en
ontwikkelings-kapitaal tot 2004. Dit is hoofsaaklik as gevolg van 'n afname in
eienaars-finansiering na 2001. Die industrie as 'n geheel het weereens 'n
verlies gelei in 2002 en die wêreld is verdeeld oor die etiese, omgewings en
ekonomiese implikasie van biotegnologiese toepassings.
Die biotegnologie en farmaseutiese industrieë het 'n simbiotiese maar tog
vyandige verhouding. 'n Verandering in die verhouding gaan Suid Afrika se
ideale om 'n biotegnologie industrie te skep grootliks beïnvloed. Suid Afrika gaan gebuk onder verskeie siektes insluitende MIVNIGS, TB,
vetsugtigheid, diabetes, hipertensie en infeksie siektes. Hierdie siektes het 'n
groot impak op Suid Afrika se samelewing. Tog word slegs 10% van die
globale navorsings en ontwikkelingsfondse aangewend om 'n oplossing te vind
vir derdewêreld siektes. Verder is bestaande produkte en behandelings
oneffektief of onbekostigbaar vir ontwikkelde lande. Dit is in sulke gevalle waar
biotegnologie en die ontwikkeling van 'n biotegnologie industrie 'n groot rol kan
speel in die verligting van Suid Afrika se gesondheids-las.
Suid Afrika is vaardig in eerste-generasie biotegnologie, maar wêreld wyd hou
derde generasie biotegnologie die meeste belofte in. Die tegnologie is tot op
hede onderbenut in Suid Afrika.
Ontwikkelende lande staar verskeie uitdagings in die gesig, maar Suid Afrika
het talle sterk punte. Die regering het R400 miljoen (oor 'n drie jaar periode)
beskikbaar gestel vir die ontwikkeling van Suid Afrika se biotegnologie
potensiaal. Die land beskik ook oor navorsers van hoogstande gehalte,
onbenutte inheemse plante en dier spesies, 'n diverse populasie en 'n gunstige
wisselkoers (lae navorsings en ontwikkelings kostes).
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/53672 |
| Date | 12 1900 |
| Creators | Nel, Izak Bartholomeus Jacques |
| Contributors | Fish, Therese, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 90 p. : ill. |
| Rights | Stellenbosch University |
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